Computer-implemented method and apparatus to allocate revenue from a derived digital component

ABSTRACT

A computer-implemented hierarchical revenue model to manage revenue allocations among derived product developers in a networked system. The model includes providing a first revenue value associated with a first digital component, providing a second revenue value associated with a second digital component, and combining the first revenue value with a second revenue value to produce a third revenue value associated with the second digital component, the second digital component including at least a portion, of the first digital component.

PRIORITY APPLICATION

This is a continuation patent application of patent application, Ser.No. 11/035,926; filed Jan. 13, 2005 now U.S. Pat. No. 7,912,793 by thesame applicant. This present patent application draws priority from thereferenced co-pending patent application. The entire disclosure of thereferenced co-pending patent application is considered part of thedisclosure of the present application and is hereby incorporated byreference herein in its entirety.

COPYRIGHT

A portion of the disclosure of this patent document contains materialthat is subject to copyright protection. The copyright owner has noobjection to the facsimile reproduction of the patent document or thepatent disclosure, as it appears in the Patent and Trademark Officepatent files or records, but otherwise reserves all copyright rightswhatsoever. The following notice applies to the software and data asdescribed below and in the drawings that form a part of this document:Copyright 2005-2011 IMVU Inc., All Rights Reserved.

BACKGROUND

1. Field

Embodiments of the invention relate to the field of computer networkapplications and networked communications; and more specifically, to thefield of hierarchical derived digital product development via a computernetwork.

2. Related Art

It is well known in the commercial business environment that variouslevels of commercial transactions are built around theretailer/wholesaler relationship. Retailers are typically those who sellgoods or commodities in small quantities directly to consumers.Wholesalers are generally those who sell goods in larger quantities, asfor resale by a retailer. A variety of different relationships exist inthe marketplace between retailers and wholesalers. For example, in somecases, a wholesaler may sell goods to a retailer, who may repackage thegoods in a basically unmodified form and then sell the goods toconsumers or end-users. In other cases, the retailer may augment orincrease the value of the goods in some way and sell the higher-valuegoods to consumers. In still other cases, a retailer or an intermediatewholesaler may purchase component goods from a group of wholesalers,assemble the component goods into an aggregate system or somehigher-value assembled product and then sell the higher-valueproduct/system to another retailer or consumers. In each case, the costof the component parts of an assembled system as charged by thecomponent wholesaler must be factored in to the price charged toconsumers by the retailer. Clearly, the retailer must cover theproduction costs of the sold goods and factor in a profit margin tosustain the business.

This commercial model has existed for many years in the domain ofphysical goods. The model relies upon a negotiated agreement betweenwholesalers and retailers at each level. The time necessary to work outthese negotiated agreements is typically not a problem given that italso takes time to transport the physical goods between wholesalers andretailers. However, as the traditional model for the commercializationof physical goods moves into the commercialization of digital goods in anetwork environment, the efficiency of the traditional model breaks downor fails to take advantage of the speed with which digital goods can bemoved around the international networked marketplace. In the commercialmarketplace of digital goods of today, wholesalers and retailers ofdigital goods still operate in the traditional model of physical goods.That is, wholesalers, intermediate wholesalers, and retailers stillcollaborate off-line to create digital goods, which are then offered forsale and/or download via the network. Unfortunately, there is currentlyno system or Method by which wholesalers can deploy digital goods toother wholesalers or retailers directly and still generate revenuestreams when their digital products are used as component parts of ahigher-value digital product.

Thus, a computer-implemented hierarchical revenue model to managerevenue allocations among derived product developers in a networkedsystem is needed.

BRIEF DESCRIPTION OF THE DRAWINGS

The present invention is illustrated by way of example and notlimitation in the figures of the accompanying drawings, in which

FIG. 1 is a block diagram of a network system on which the presentinvention may operate.

FIGS. 2 and 3 are a block diagram of a computer system on which thepresent invention may operate.

FIG. 4 illustrates an example of a shared virtual scene in which twoavatars interact with each other as users represented by the avatarsconverse in an instant message communication environment.

FIG. 5 illustrates a typical network architecture used in oneembodiment.

FIG. 6 illustrates a representation of a derived digital product A asmade up of several digital component parts (i.e. component products B,C, and D), each of which are made up of their own component parts.

FIG. 7 illustrates the same representation shown in FIG. 6, except thecharacteristics of product A have been highlighted.

FIG. 8 illustrates the characteristics of products A and B and thecomputation of wholesale and retail values.

FIG. 9 illustrates the characteristics of products B and C and thecomputation of wholesale and retail values.

FIG. 10 illustrates a product derived from multiple parent products.

FIG. 11 illustrates the allocation of revenue among product developers.

FIGS. 12-16 illustrate an embodiment of a user interface shown ascomputer display screen snapshots.

DETAILED DESCRIPTION

A computer-implemented hierarchical revenue model to manage revenueallocations among derived product developers in a networked system isdisclosed. In the following description, numerous specific details areset forth. However, it is understood that embodiments of the inventionmay be practiced without these specific details. In other instances,well-known processes, structures and techniques have not been shown indetail in order not to obscure the understanding of this description.

Referring now to FIG. 1, a diagram illustrates the network environmentin which the present invention operates. In this conventional networkarchitecture, a server computer system 100 is coupled to a wide-areanetwork 110. Wide-area network 110 includes the Internet, or otherproprietary networks, which are well known to those of ordinary skill inthe art. Wide-area network 110 may include conventional networkbackbones, long-haul telephone lines, Internet service providers,various levels of network routers, and other conventional means forrouting data between computers. Using conventional network protocols,server 100 may communicate through wide-area network 110 to a pluralityof client computer systems 120, 130, 140 connected through wide-areanetwork 110 in various ways. For example, client 140 is connecteddirectly to wide-area network 110 through direct or dial up telephone orother network transmission line. Alternatively, clients 130 may beconnected through wide-area network 110 using a modem pool 114. Aconventional modem pool 114 allows a plurality of client systems toconnect with a smaller set of modems in modem pool 114 for connectionthrough wide-area network 110. In another alternative network topology,wide-area network 110 is connected to a gateway computer 112. Gatewaycomputer 112 is used to route data to clients 120 through a local areanetwork (LAN) 116. In this manner, clients 120 can communicate with eachother through local area network 116 or with server 100 through gateway112 and wide-area network 110.

Using one of a variety of network connection means, server computer 100can communicate with client computers 150 using conventional means. In aparticular implementation of this network configuration, a servercomputer 100 may operate as a web server if the Internet's World-WideWeb (WWW) is used for wide area network 110. Using the HTTP protocol andthe HTML coding language across wide-area network 110, web server 100may communicate across the World-Wide Web with clients 150. In thisconfiguration, clients 150 use a client application program known as aweb browser such as the Internet Explorer™ published by MicrosoftCorporation of Redmond, Wash., the user interface of America On-Line™,or the web browser or HTML translator of any other well-known supplier.Using such conventional browsers and the World-Wide Web, clients 150 mayaccess image, graphical, and textual data provided by web server 100 orthey may run Web application software. Conventional means exist by whichclients 150 may supply information to web server 100 through theWorld-Wide Web 110 and the web server 100 may return processed data toclients 150.

Having briefly described one embodiment of the network environment inwhich the present invention may operate, FIGS. 2 and 3 show an exampleof a computer system 200 illustrating an exemplary client 150 or server100 computer system in which the features of the present invention maybe implemented. Computer system 200 is comprised of a bus or othercommunications means 214,216 for communicating information, and aprocessing means such as processor 220 coupled with bus 214 forprocessing information. Computer system 200 further comprises a randomaccess memory (RAM) or other dynamic storage device 222 (commonlyreferred to as main memory), coupled to bus 214 for storing informationand instructions to be executed by processor 220. Main memory 222 alsomay be used for storing temporary variables or other intermediateinformation during execution of instructions by processor 220. Computersystem 200 also comprises a read only memory (ROM) and/or other staticstorage device 224 coupled to bus 214 for storing static information andinstructions for processor 220.

An optional data storage device 228 such as a magnetic disk or opticaldisk and its corresponding drive may also be coupled to computer system200 for storing information and instructions. Computer system 200 canalso be coupled via bus 216 to a display device 204, such as a cathoderay tube (CRT) or a liquid crystal display (LCD), for displayinginformation to a computer user. For example, image, textual, video, orgraphical depictions of information may be presented to the user ondisplay device 204. Typically, an alphanumeric input device 208,including alphanumeric and other keys is coupled to bus 216 forcommunicating information and/or command selections to processor 220.Another type of user input device is cursor control device 206, such asa conventional mouse, trackball, or other type of cursor direction keysfor communicating direction information and command selection toprocessor 220 and for controlling cursor movement on display 204.

Alternatively, the client 150 can be implemented as a network computeror thin client device. Client 150 may also be a laptop or palm-topcomputing device, such as the Palm Pilot™. Client 150 could also beimplemented in a robust cellular telephone, where such devices arecurrently being used with Internet micro-browsers. Such a networkcomputer or thin client device does not necessarily include all of thedevices and features of the above-described exemplary computer system;however, the functionality of the present invention or a subset thereofmay nevertheless be implemented with such devices.

A communication device 226 is also coupled to bus 216 for accessingremote computers or servers, such as web server 100, or other serversvia the Internet, for example. The communication device 226 may includea modem, a network interface card, or other well-known interfacedevices, such as those used for interfacing with Ethernet, Token-ring,or other types of networks. In any event, in this manner, the computersystem 200 may be coupled to a number of servers 100 via a conventionalnetwork infrastructure such as the infrastructure illustrated in FIG. 1and described above.

The system of the present invention includes software, informationprocessing hardware, and various processing steps, which will bedescribed below. The features and process steps of the present inventionmay be embodied in machine or computer executable instructions. Theinstructions can be used to cause a general purpose or special purposeprocessor, which is programmed with the instructions to perform thesteps of the present invention. Alternatively, the features or steps ofthe present invention may be performed by specific hardware componentsthat contain hard-wired logic for performing the steps, or by anycombination of programmed computer components and custom hardwarecomponents. While embodiments of the present invention will be describedwith reference to the World-Wide Web, the method and apparatus describedherein is equally applicable to other network infrastructures or otherdata communications systems.

The present invention is a computer-implemented hierarchical revenuemodel to manage revenue allocations among derived product developers ina networked system. In one embodiment, avatars represent one example ofa digital product that can be augmented, modified, improved, derived, orotherwise changed through a hierarchy of product developers, each ofwhom add some value to the component parts that are ultimately sold as aderived digital product.

The avatars of one embodiment of the present invention are built onconventional animated three-dimensional (3D) mathematical models usingtechniques well known to those of ordinary skill in the art. Existingsystems have found the use of avatars beneficial for improvedcommunication. Conventional avatars are 2D or 3D graphic images that canbe used to represent a human individual. Many systems have improved theanimation of the avatar images so the images in animation can representvarious facial expressions and generally appear reasonably lifelike.Other conventional systems use avatars to represent a user while he/sheis chatting with one or more other users. However, these systems do notrepresent the avatars as interacting in an environment.

The present invention improves on the prior art by placing these 3Davatars in virtual environments and enabling interaction between theavatars in a shared virtual scene. The behavior of the 3D avatars isrelated to the interaction between the computer users being representedby the avatars. In one embodiment, the avatars represent users in aninstant messaging (IM) conversation supported by conventionalnetwork-based IM infrastructure. As the users type in dialog in aconventional IM application program, the dialog is displayed in theshared virtual scene as dialog bubbles adjacent to the avatarrepresenting the speaker. FIG. 4 illustrates such a shared virtual scenein which two avatars are shown with associated dialog bubblescorresponding to the conversation taking place between IM users beingrepresented by the avatars.

In the example of FIG. 4, each of the avatars in the virtual scene canrepresent a digital good or a digital product that can be offered forsale to a consumer. In particular, each avatar can represent a deriveddigital product that comprises a combination of component digital parts.For example, an avatar can include representations of various appareland/or jewelry along with accessories. In the example of FIG. 4, oneavatar is shown with a blue shirt and green shoes with a beverage cup onthe table. This avatar can thus be considered a derived digital productwith the blue shirt, the green shoes, and the beverage cup being digitalcomponent parts that can be purchased separately by a consumer. In thisexample, a consumer could be allowed to “dress” his/her avatar bypurchasing component digital attire (i.e. digital component parts). Thevarious available digital component parts can be provided by differentdigital wholesalers. Each wholesaler (i.e. a digital componentprovider), in the system of the present invention, is able to receiveproportionate component revenues when purchase of a derived digitalproduct is completed by a consumer. In the description that follows, thesystem and method of the present invention to enable the revenue sharingamong digital component providers is fully disclosed.

Referring to FIG. 5, a diagram illustrates a typical networkarchitecture used in one embodiment. In this embodiment, an interactionserver is used to enable interaction and/or communication between twonetworked computer users represented by avatars (i.e. Avatar A andAvatar B). As described above, one application of die avatar embodimentof the present invention is an IM application. In the diagram of FIG. 4,the conventional IM server/provider is represented as the interactionserver. In this case, the interaction server facilitates IMcommunications between the users associated with Avatar A and Avatar B.

Because the revenue model of the present invention relies upon thepurchase and ownership of a particular avatar (i.e. digital product) bya particular user, it is necessary to determine at various stages of theIM communication whether a particular user is a legitimate owner (orlicensee) of a selected avatar. For this reason, one embodiment uses theownership checker server to validate that a specific user has acquiredthe rights to use a particular avatar or a particular digital product.If this ownership validation becomes necessary during an IMcommunication session, for example, the end user client system caninitiate a communication with the ownership checker server to validateownership of a particular digital product. If ownership is validated ora purchase transaction is completed, the ownership checker serverenables the use of the particular digital product.

As an example of an ownership checking transaction, the user representedby Avatar B (shown in FIG. 5) may be in conventional IM communicationwith the user represented by Avatar A. During this IM session, AvatarB's user may wish to select or purchase a new pair of (digitallyrepresented) shoes for his/her avatar (Avatar B). During this selectionprocess, Avatar B's user is presented with various (digitallyrepresented) shoe selections. Upon selection of a particular digitalproduct (i.e. a digitally represented pair of shoes), the client systemof Avatar B's user initiates a request to the ownership checker serverto determine if Avatar B's user had previously purchased the selecteddigital product. If not, a purchase transaction may be initiated withthe ownership checker server or another sales server in a differentembodiment. Once the purchase transaction is complete, the ownershipchecker server validates Avatar B's user's property rights in theselected digital product and the selected (digitally represented) pairof shoes is displayed on Avatar B.

Referring to FIG. 6, a diagram illustrates a representation of a sampleparentage tree showing relationships between various digital productsand related derived products and components. In the example shown inFIG. 6, digital product A is the ancestor of various other deriveddigital products shown as products B, C, and D. In particular, product Ais the parent of product B. This means that product B inherits thecharacteristics of product A, and product B is derived from product A.Similarly, product C inherits the characteristics of products A and B,and product C is derived from product B (and indirectly derived fromproduct A). Additionally, other derived products may similarly becreated; such as, product B1 can be derived from Product B and inheritthe characteristics of product B (and indirectly inherit from productA). As shown in FIG. 6, other derived products, such as products C11,C1, D, D11, D1, D12, and D2 may be arbitrarily created in variousrelationships to each other. In each case, every derived product has atleast one parent product/component. It is also possible for a givenderived product to have multiple parents. In this case, the derivedproduct inherits the characteristics of each of the parent components.

As will be described in more detail below, wholesale and retail costs(revenue) associated with each component are allocated and aggregated todetermine the wholesale and retail costs (revenue) associated with aderived digital product/component. As such, the values or various costsassociated with each derived component are included in thecharacteristics inherited by the derived component from its parentcomponents. Using the techniques of the present invention disclosedherein, various developers of digital goods can choose to build newderived digital goods from an existing parent digital component. Thevalue existing in the parent component is inherited by the new derivedgood and the developer can assign an additional value to the deriveddigital good that typically represents the additional value thedeveloper has added to the derived digital good. In this manner, thedeveloper can arbitrarily insert a new derived component into theparentage tree represented by example in FIG. 6 by choosing a parentcomponent from which the derived component will be derived. This processwill be described in further detail in connection with the figuresherein illustrating various user interface screen snapshots of anembodiment of the invention.

Referring to FIG. 7, the same sample parentage tree shown in FIG. 6 hasbeen modified to illustrate the characteristic details of component A.As shown, the characteristics of component A include the identity of thecomponent (A), the identity of the component's next level parent (inthis case, A has no parent as it is the root node of the tree), thewholesale value (WS) of the component, and the retail value (RT) of thecomponent. In the example shown in FIGS. 7-11, specific values are shownas examples for the RT and WS characteristics for particular components.It will be understood by those of ordinary skill in the art that thesecharacteristics are variables and may be assigned any value. Similarly,it will be understood by those of ordinary skill in the art that manyother component characteristics are or could be associated with aparticular component. Once the root component is established, otherderived components may be created from the root component or otherderived components by independent developers in the manner described inmore detail below.

Referring to FIG. 8, a portion of the same sample parentage tree shownin FIG. 7 has been modified to illustrate the characteristic details ofa new derived component B. Similar to component A, the characteristicsof component B include the identity of the component (B), the identityof the component's next level parent (in this case, component B's parentis component A), the wholesale value (WS) of the component, and theretail value (RT) of the component. In a derived component of thepresent invention, the WS and RT values of the derived component can becomputed in the manner described below.

In the example of FIG. 8, the values for WS and WIT of component A aregenerated as described above. In this example, the WS of component A is10 [i.e. WS(A)=10] and the RT of component A is 25 (i.e. RT(A)=25).Because component A is the parent of component B, WS(A) will be used inthe computation of the WS of component B [WS(B)] as described below.Conceptually, the developer of component B has chosen to use component Aas a building block or foundation upon which derived component B will bebuilt. As such, all or a substantial part of component A willnecessarily be included as part of the completed derived component B.The value of WS(A) roughly represents the cost to produce the componentA. Thus, because derived component B will include component A, the valueof WS(B) will include the cost to produce component A combined with theadditional cost of producing the derived portion of component B. Asshown in FIG. 8, the additional cost of producing the derived portion ofcomponent B is reflected as a wholesale mark up value (WSMU). In theexample of FIG. 8, the WSMU value for component B [WSMU(B)] isarbitrarily given the value of 1. Clearly this variable could be anyvalue roughly representing the additional cost of producing the derivedportion of component B. Thus, the value of WS(B) including the cost toproduce component A combined with the additional cost of producing thederived portion of component B is given by the formula:WS(B)=WSMU(B)+WS(A)

In an alternative embodiment, the WSMU(B) can be defined as amultiplier, which would be used in an alternate formula as follows:WS(B)=WSMU(B)*WS(A)

In either case, the result is the computed wholesale value of componentB [WS(B)]. In the example of FIG. 8, this sample value equals 11 asshown.

The retail value of component B [RT(B)] represents the value aconsumer/purchaser will pay for the component. The RT of a component isclearly set at a value greater than the WS value to enable the developerto profit from the transaction. In one embodiment of the invention, thederived component developer is allowed to set the RT at any arbitraryvalue that s/he believes a purchaser will be willing to pay. In theembodiment shown in FIG. 8, the RT(B) is shown as a product of the WS(B)multiplied with a retail markup value (RTMU) typically defined by thederived component developer. The RTMU corresponds to the profit marginthe developer expects to make. Thus, in the embodiment shown in FIG. 8,the RT(B) is computed as follows:RT(B)=WS(B)*RTMU(B)

The result is the computed retail value of component 13 [RT(B)]. In theexample of FIG. 8, this sample value equals 13.75 as shown.

In an alternative embodiment, the RTMU can be defined as a fixed profitvalue added to the WS value of the component. This embodiment iscomputed as follows:RT(B)=WS(B)+RTMU(B)

The profit realized by the derived component developer is the differencebetween the wholesale value of the component and the retail value of thecomponent. Thus, in the example of FIG. 8, the profit for the developerof derived component B is given as follows:Profit(B)=RT(B)−WS(B)

As shown in FIG. 8, the present invention enables a derived component tobe created and to have wholesale and retail values associated with thederived component that factor in the wholesale value associated with theparent of the derived component. In this manner, a computer-implementedhierarchical revenue model can be created to manage revenue allocationsamong derived product developers in a networked system.

In FIG. 9, an additional portion of the same sample parentage tree shownin FIGS. 7 and 8 has been modified to illustrate the characteristicdetails of a new derived component C. Derived component C is shown asconnected to its parent component B, which in turn is connected to itsparent component A. Similar to components A and B, the characteristicsof component C include the identity of the component (C), the identityof the component's next level parent (in this case, component C's parentis component B), the wholesale value (WS) of the component, and theretail value (RT) of the component. In a derived component of thepresent invention, the WS and RT values of the derived component can becomputed in the manner described below.

In the example of FIG. 9, the values for WS and RT of components A and Bare generated as described above. In this example, the WS of component Bis 11 [i.e. WS(B)=11] and the RT of component B is 13.75 (i.e.RT(B)=13.75). Because component B is the parent of component C, WS(B)will be used in the computation of the WS of component C [WS(C)] asdescribed below. Because derived component C will include components Aand B, the value of WS(C) will include the cost to produce bothcomponents A and B combined with the additional cost of producing thederived portion of component C. As shown in FIG. 9, the additional costof producing the derived portion of component C is reflected as awholesale mark up value (WSMU). In the example of FIG. 9, the WSMU valuefor component C [WSMU(C)] is arbitrarily given the value of 2. Clearlythis variable could be any value roughly representing the additionalcost of producing the derived portion of component C. Thus, the value ofWS(C) including the cost to produce both components A and B combinedwith the additional cost of producing the derived portion of component Cis given by the formula:WS(C)=WSMU(C)+WS(B)

Note that the cost of producing component A is already factored into thewholesale value of component B [WS(B)]. Thus, the wholesale value ofcomponent C inherently includes the wholesale value of components A andB, i.e. each of its ancestors. In an alternative embodiment, the WSMU(C)can be defined as a multiplier, which would be used in an alternateformula as follows:WS(C)=WSMU(C)*WS(B)

In either case, the result is the computed wholesale value of componentC [WS(C)]. In the example of FIG. 9, this sample value equals 13 asshown.

The retail value of component C [RT(C)] represents the value aconsumer/purchaser will pay for the component. In the embodiment shownin FIG. 9, the RT(C) is shown as a product of the WS(C) multiplied witha retail markup value (RTMU) typically defined by the derived componentdeveloper. The RTMU corresponds to the profit margin the developerexpects to make from consumer/purchasers. Thus, in the embodiment shownin FIG. 9, the RT(C) is computed as follows:RT(C)=WS(C)*RTMU(C)

The result is the computed retail value of component C [RT(C)]. In theexample of FIG. 9, this sample value equals 19.5 as shown.

In an alternative embodiment, the RTMU can be defined as a fixed profitvalue added to the WS value of the component. This embodiment iscomputed as follows:RT(C)=WS(C)+RTMU(C)

The profit realized by the derived component developer is the differencebetween the wholesale value of the component and the retail value of thecomponent. Thus, in the example of FIG. 9, the profit for the developerof derived component C is given as follows:Profit(C)=RT(C)−WS(C)

As shown in FIGS. 8 and 9, the present invention enables a derivedcomponent to be created at any level in a hierarchy and to havewholesale and retail values associated with the derived component thatfactor in the wholesale values associated with the ancestors of thederived component. In this manner, a computer-implemented hierarchicalrevenue model can be created to manage revenue allocations among derivedproduct developers in a networked system.

FIG. 10 illustrates an embodiment in which a derived component D isderived from two parent components, i.e. derived component B andcomponent B′. In FIG. 10, derived component D is shown as connected toparent component B, which in turn is connected to its parent componentA. Derived component D is also connected to parent component B′. Similarto components A, B, and B′, the characteristics of component D includethe identity of the component (D), the identity of the component's nextlevel parents (in this case, component D's parents are component B andB′), the wholesale value (WS) of the component, and the retail value(RT) of the component. In a derived component of the present invention,the WS and RT values of the derived component can be computed in themanner described below.

In the example of FIG. 10, the values for WS and RT of components A, B,and B′ are generated in the manner as described above. In this example,the WS of component B is 11 [i.e. WS(B)=11] and the RT of component B is13.75 (i.e. RT(B)=13.75). Similarly, the WS of component B′ is 4 [i.e.WS(B′)=4] and the RT of component B′ is 5 (i.e. RT(B′)=5). Becausecomponents B and B′ are the parents of component D, WS(B) and WS(B′)will be used in the computation of the WS of component D [WS(D)] asdescribed below. Because derived component D will include components A,B, and B′, the value of WS(D) will include the cost to producecomponents A, B, and B′ combined with the additional cost of producingthe derived portion of component D. As shown in FIG. 10, the additionalcost of producing the derived portion of component D is reflected as awholesale mark up value (WSMU). In the example of FIG. 10, the WSMUvalue for component D [WSMU(D)] is arbitrarily given the value of 3.Clearly this variable could be any value roughly representing theadditional cost of producing the derived portion of component D. Thus,the value of WS(D) including the cost to produce components A, B, and B′combined with the additional cost of producing the derived portion ofcomponent D is given by the formula:WS(D)=WSMU(D)+WS(B)+WS(B′)

Note that the cost of producing component A is already factored into thewholesale value of component B [WS(B)]. Thus, the wholesale value ofcomponent D inherently includes the wholesale value of components A, B,and B′, i.e. each of its ancestors. In an alternative embodiment, theWSMU(D) can be defined as a multiplier, which would be used in analternate formula as follows:WS(D)=WSMU(D)*(WS(B)+WS(B′))

In either case, the result is the computed wholesale value of componentD [WS(D)]. In the example of FIG. 10, this sample value equals 18 asshown.

The retail value of component D [RT(D)] represents the value aconsumer/purchaser will pay for the component. In the embodiment shownin FIG. 10, the RT(D) is shown as a product of the WS(D) multiplied witha retail markup value (RTMU) typically defined by the derived componentdeveloper. The RTMU corresponds to the profit margin the developerexpects to make. Thus, in the embodiment shown in FIG. 10, the RT(D) iscomputed as follows:RT(D)=WS(D)*RTMU(D)

The result is the computed retail value of component D [RT(D)]. In theexample of FIG. 10, this sample value equals 31.5 as shown.

In an alternative embodiment, the RTMU can be defined as a fixed profitvalue added to the WS value of the component. This embodiment iscomputed as follows:RT(D)=WS(D)+RTMU(D)

The profit realized by the derived component developer is the differencebetween the wholesale value of the component and the retail value of thecomponent. Thus, in the example of FIG. 10, the profit for the developerof derived component D is given as follows:Profit(D)=RT(D)−WS(D)

As shown in FIGS. 8-10, the present invention enables a derivedcomponent to be created at any level in a hierarchy, with any number ofparent components, and to have wholesale and retail values associatedwith the derived component that factor in the wholesale valuesassociated with the ancestors of the derived component. In this manner,a computer-implemented hierarchical revenue model can be created tomanage revenue allocations among derived product developers in anetworked system.

Once the computer-implemented hierarchical revenue model of the presentinvention is created as described above, the model and theproducts/components represented therein, can be made available forpurchase or lease to consumer/purchasers via the network infrastructurealso described above. Using a computer-implemented user interface, aconsumer can identify for purchase one of the products available in aparticular implementation of the present invention.

Referring to FIG. 11, the sample computer-implemented hierarchicalrevenue model of the present invention created as described above inrelation to FIGS. 8-9 is shown. Using a computer-implemented userinterface, a consumer selects for purchase one of the products (i.e. A,B, or C) available in the particular sample implementation of thedescribed embodiment. As shown in FIG. 11, if the consumer selects forpurchase product C, the consumer pays the retail price for product C(i.e. RT(C)=19.5). This purchase can be performed on a standard publicnetwork, such as the Internet, using conventional techniques. Thedeveloper of product C receives the retail price for product C (i.e.RT(C)=19.5), but the developer of product C must pay the wholesale pricefor component B from which product C was derived, Thus, the developer ofproduct C pays the wholesale price for component B (i.e. WS(B)=11) tothe developer of product B, the parent of product C. The developer ofproduct 13 receives the wholesale price for component B (i.e. WS(B)=11)from developer C; however, developer B must pay the wholesale price forcomponent A (i.e. WS(A)=10) to the developer of product A, the parent ofproduct B. The developer of product A receives the wholesale price forcomponent A (i.e. WS(AB)=10) from developer B. Because product A is theroot node and has no ancestors, it would be beneficial for the developerof product A to pay a set amount to the network/system administrator tosupport the costs necessary to provide the network and administrativeinfrastructure needed to keep the system running.

Thus, as can be seen by the example illustrated in FIG. 11, the purchaseof a product by a consumer causes the corresponding revenue to beappropriately allocated and automatically paid to the developer/ownersof the ancestor components corresponding to the purchased product. Inthis manner, a computer-implemented hierarchical revenue model can becreated to manage revenue allocations among derived product developersin a networked system.

As an example of the present invention and a user interface associatedtherewith, FIGS. 12-16 illustrate an embodiment of a user interfaceshown as computer display screen snapshots. In FIG. 12 (Urbanetteavatar), a digital product is shown as available for purchase. In thisexample, the digital product is an avatar figure. Note the retail costof the avatar figure is shown as AV$2,500. In this example, this productmight represent the root node of a hierarchy of products in a particularrevenue model.

As shown in FIG. 13, another digital product (Daisy Oxford Spring) isshown as a product for sale for a retail price of AV$500. Note that atthe middle right portion of the figure, a comment states that thisproduct (Daisy Oxford Spring) is derived from the Urbanette avatarproduct shown in FIG. 12. Thus, the product shown in FIG. 13 is derivedfrom its parent product shown in FIG. 12 in a similar manner thatProduct B is derived from Product A as shown in FIG. 8.

As shown in FIG. 14, another digital product (Brown & Gold Oxford) isshown as a product for sale for a retail price of AV$563. Note that atthe middle right portion of the figure, a comment states that thisproduct (Brown & Gold Oxford) is derived from the Daisy Oxford Springproduct shown in FIG. 13. Thus, the product shown in FIG. 14 is derivedfrom its parent product shown in FIG. 13, which is derived from itsparent product shown in FIG. 12 in a similar manner that Product C isderived from Product B, which is derived from Product A as shown in FIG.9.

Referring to FIGS. 15-16, user interface screen snapshots represent anembodiment of a presentation to a product developer who is beingprompted to submit a product for addition to the hierarchical revenuemodel. Note that at item 1 on FIG. 15, the developer specifies theidentity of the parent product (e.g. Daisy Oxford) from which thedeveloper's new product will be derived. This specification of theidentity of the parent product enables the system of the presentinvention to properly place the newly created product into thehierarchical structure and to properly initialize the necessary linksbetween products. Note that at item 5 of FIG. 15, the developer canprovide the identity of the new product.

Referring to FIG. 16, the developer can specify the wholesale price forthe new product at item 7. Because the developer has already identifiedthe parent of the new product, the system can insert a default breakeven point corresponding to the wholesale value of the parent product.However, the system enables the developer to override this default valueand insert a desired wholesale value for the new product. In the case,the developer has entered 250. Once the developer has entered thedesired wholesale value for the new product, the system can compute thecorresponding retail value as shown at item 8 in FIG. 16. In this case,the retail value is computed as 1.25 times the previously specifiedwholesale price. However, the retail price can be computed in any numberof ways. Alternatively, the system could prompt the developer for theentry of a desired retail value. These values and other data gatheredthrough the user interface or generated in response thereto can beassembled into a set of characteristics associated with the new digitalcomponent and inserted into the data structure described in detailabove.

Thus, a computer-implemented hierarchical revenue model to managerevenue allocations among derived product developers in a networkedsystem is disclosed. While the invention has been described in terms ofseveral embodiments, those skilled in the art will recognize that theinvention is not limited to the embodiments described, but can bepracticed with modification and alteration within the spirit and scopeof the appended claims. The description is thus to be regarded asillustrative instead of limiting.

1. A computer-implemented method, comprising: providing a processor;storing, in a data storage device in data communication with theprocessor, a plurality of digital components, each digital component ofthe plurality of digital components having associated characteristicsand being configured for modeling in a three dimensional (3D) virtualenvironment, the plurality of digital components including deriveddigital components that inherit characteristics from ancestor digitalcomponents, at least one of the inherited characteristics being revenuevalues corresponding to each ancestor digital component; allocating afirst revenue value associated with a first digital component, the firstdigital component being related to a first party; allocating a secondrevenue value associated with a second digital component, the seconddigital component being related to a second party, the second partybeing different from the first party; receiving user input data via auser interface; modifying, by use of the processor and the user inputdata, the first digital component to include at least a portion of thesecond digital component, thereby producing a third digital component,the first, second, and third digital components being configured formodeling in the 3D virtual environment, the second digital componentbeing configured for integration and operation with the first digitalcomponent for modeling in the 3D virtual environment, the third digitalcomponent being a derived digital component that inheritscharacteristics of the first and the second digital components, thethird digital component inheriting the first revenue value from thefirst digital component, the third digital component inheriting thesecond revenue value from the second digital component; combining theinherited first revenue value with the inherited second revenue value toproduce a third revenue value associated with the third digitalcomponent; offering the third digital component to consumers at a pricecorresponding to the third revenue value; allocating a first portion ofthe third revenue value to the first party, the value of the firstportion corresponding to the inherited first revenue value; andallocating a second portion of the third revenue value to the secondparty, the value of the second portion corresponding to the inheritedsecond revenue value.
 2. The method as claimed in claim 1 wherein thesecond digital component is derived from the first digital component. 3.The method as claimed in claim 1 wherein the first digital component isa parent of the second digital component.
 4. The method as claimed inclaim 1 wherein the first revenue value is reduced by a pre-determinedpercentage.
 5. The method as claimed in claim 1 wherein the secondrevenue value is reduced by a pre-determined percentage.
 6. The methodas claimed in claim 1 wherein the third revenue value is reduced by apre-determined percentage.
 7. The method as claimed in claim 1 furtherincluding: providing a fourth revenue value associated with the thirddigital component, the fourth revenue value being a retail priceassociated with the third digital component, the retail price being thethird revenue value multiplied by a profit multiplier.
 8. The method asclaimed in claim 1 further including: providing a fourth revenue valueassociated with the third digital component, the fourth revenue valuebeing a retail price, wherein the fourth revenue value is computed basedon the third revenue value.
 9. The method as claimed in claim 1 whereinan identity of a parent of the second digital component is specified viaa user interface.
 10. The method as claimed in claim 1 wherein thesecond digital component has a plurality of parents.
 11. Acomputer-implemented apparatus comprising: a processor; a data storagedevice in data communication with the processor, the data storage devicefor storing a plurality of digital components, each digital component ofthe plurality of digital components having associated characteristicsand being configured for modeling in a three dimensional (3D) virtualenvironment, the plurality of digital components comprising digitalcomponents, the digital components including derived digital componentsthat inherit characteristics from ancestor digital components, at leastone of the inherited characteristics being revenue values correspondingto each ancestor digital component; a first processing module,executable by the processor, to allocate a first revenue valueassociated with a first digital component, the first digital componentbeing related to a first party; a second processing module, executableby the processor, to allocate a second revenue value associated with asecond digital component, the second digital component being related toa second party, the second party being different from the first party; auser interface for receiving user input; and a third processing module,executable by the processor, to provide the user interface to modify, byuse of the processor and the user input, the first digital component toinclude at least a portion of the second digital component, therebyproducing a third digital component, the first, second, and thirddigital components being configured for modeling in the 3D virtualenvironment, the second digital component being configured forintegration and operation with the first digital component for modelingin the 3D virtual environment, the third digital component being aderived digital component that inherits characteristics of the first andthe second digital components, the third digital component inheritingthe first revenue value from the first digital component, the thirddigital component inheriting the second revenue value from the seconddigital component; the third processing module further to combine theinherited first revenue value with the inherited second revenue value toproduce a third revenue value associated with the third digitalcomponent, to offer the third digital component to consumers at a pricecorresponding to the third revenue value, to allocate a first portion ofthe third revenue value to the first party, the value of the firstportion corresponding to the inherited first revenue value, and toallocate a second portion of the third revenue value to the secondparty, the value of the second portion corresponding to the inheritedsecond revenue value.
 12. The apparatus as claimed in claim 11 whereinthe second digital component is derived from the first digitalcomponent.
 13. The apparatus as claimed in claim 11 wherein the firstdigital component is a parent of the second digital component.
 14. Theapparatus as claimed in claim 11 wherein the first revenue value isreduced by a pre-determined percentage.
 15. The apparatus as claimed inclaim 11 wherein the second revenue value is reduced by a pre-determinedpercentage.
 16. The apparatus as claimed in claim 11 wherein the thirdrevenue value is reduced by a pre-determined percentage.
 17. Theapparatus as claimed in claim 11 further including: a fourth processingmodule to provide a fourth revenue value associated with the thirddigital component, the fourth revenue value being a retail priceassociated with the third digital component, the retail price being thethird revenue value multiplied by a profit multiplier.
 18. The apparatusas claimed in claim 11 further including: a fourth processing module toprovide a fourth revenue value associated with the third digitalcomponent, the fourth revenue value being a retail price, wherein thefourth revenue value is computed based on the third revenue value. 19.The apparatus as claimed in claim 11 wherein an identity of a parent ofthe second digital component is specified via a user interface.
 20. Theapparatus as claimed in claim 11 wherein the second digital componenthas a plurality of parents.